US-based private equity company Hg is considering options for German insurance intermediary Gossler, Gobert & Wolters (GGW) Group, reported Bloomberg, citing sources.

The options being considered include the sale of GGW, which could be valued at around €1.5bn, the sources said.

Focused on investing in technology companies in the US and Europe, Hg has approached advisers as it weighs divesting part or all its stake in the insurance broker.

Talks are still ongoing and a final decision on the deal is yet to be made, the people said, adding that the private equity player could also decide against selling GGW and grow it through bolt-on deals.

Established in 1758, GGW is engaged in offering insurance and risk management services and claims to be the oldest insurance intermediary in continental Europe.

The Hamburg-founded company employs roughly 2,000 people and has operations in the Netherlands, Turkey, Switzerland, and Austria, besides Germany.  

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By GlobalData

Hg made an investment in the GGW in 2021, and since then, it has expanded through nearly forty bolt-on acquisitions.

Hg and GGW representatives declined to comment on the development.

Brokers such as GGW act as a middleman between businesses looking for risk coverage and the insurers who offer it.

As per the report, due to its high degree of fragmentation and the ability of its participants to generate capital, the insurance broker industry has been a hotbed for private equity dealmaking in recent years.

Notable deals have included KKR’s acquisition of French insurance broker APRIL Group for €2.3bn.